Market Forces blog + SVG Capital | The Guardianhttps://www.theguardian.com/business/marketforceslive+svgcapital
Indexen-gbGuardian News and Media Limited or its affiliated companies. All rights reserved. 2016Fri, 09 Dec 2016 17:06:22 GMT2016-12-09T17:06:22Zen-gbGuardian News and Media Limited or its affiliated companies. All rights reserved. 2016The Guardianhttps://assets.guim.co.uk/images/guardian-logo-rss.c45beb1bafa34b347ac333af2e6fe23f.pnghttps://www.theguardian.com
Private equity group SVG jumps 15% after £1bn US bidhttps://www.theguardian.com/business/marketforceslive/2016/sep/12/private-equity-group-svg-jumps-15-after-1bn-us-bid
<p>Company tells shareholders to take no action but US group has 51% support</p><p>On a down day, private equity group <strong>SVG Capital</strong> is bucking the trend following a £1bn offer from US rival HarbourVest Partners.</p><p>The US group is offering 650p a share in cash, and has bought 8.5% of the business, meaning it has the backing of around 51.2% of the shareholder base.</p><p>While our offer does not currently have the recommendation of the board of SVG Capital, we look forward to a constructive dialogue with them in order to crystallise the certainty of value, today and in cash, to its shareholders.</p><p>Overall it looks like this deal is fairly far down the line ... Whilst the initial offer appear at a discount of 2.4% to the April net asset vale, this doesn’t take into account the foreign exchange moves since Brexit and the performance of the portfolio since April. As a result of foreign exchange alone we estimate the discount to be closer to 10%. However, despite this slightly wider discount this still appears an attractive offer with the majority of other private equity names trading wider than 10%, with a number of discounts greater than 20% offering investors in SVG an opportunity to recycle capital.</p> <a href="https://www.theguardian.com/business/marketforceslive/2016/sep/12/private-equity-group-svg-jumps-15-after-1bn-us-bid">Continue reading...</a>BusinessStock marketsSVG CapitalMon, 12 Sep 2016 10:07:36 GMThttp://www.theguardian.com/business/marketforceslive/2016/sep/12/private-equity-group-svg-jumps-15-after-1bn-us-bidPhotograph: Andy Rain/EPAPhotograph: Andy Rain/EPANick Fletcher2016-09-12T10:07:36ZRio Tinto and Citi lift miners, but FTSE falters after recent risehttps://www.theguardian.com/business/marketforceslive/2014/jan/16/rio-tinto-miners-rise-ftse-100-falters
Mining sector and retailers in focus while BSkyB falls on Premier League cost concerns<p>A strong performance from mining companies was not enough to lift leading shares to their fifth successive day of gains.</p><p>After Wednesday's jump to a near eight month high the <strong>FTSE 100</strong> paused for breath, slipping 4.44 points to 6815.42.</p> <a href="https://www.theguardian.com/business/marketforceslive/2014/jan/16/rio-tinto-miners-rise-ftse-100-falters">Continue reading...</a>BusinessRio TintoAntofagastaAnglo AmericanBHP BillitonGlencoreDixons RetailAssociated British FoodsHalfordsHome RetailUnited UtilitiesSky plcBTIntertekSVG CapitalPremier OilThu, 16 Jan 2014 17:06:20 GMThttp://www.theguardian.com/business/marketforceslive/2014/jan/16/rio-tinto-miners-rise-ftse-100-faltersNick Fletcher2014-01-16T17:06:20ZFTSE 100 falters after four days of rises, with Amec hit by cautious outlookhttps://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falters-amec-caution
Poor eurozone GDP figures give investors the excuse to cash in some of their recent gains<p>News that Europe was stuck firmly in recession took the shine off markets, but the leading faller was hit by more specific concerns.</p><p>Engineering consultancy <strong>Amec</strong>, which serves the mining, oil and gas, nuclear and renewable energy industry, fell more than 7% after a cautious outlook statement. The company said full year earnings rose 11% to £331m, helped by strong performances from the UK north sea, gulf of Mexico and contract wins in the middle east. But it added:</p> <a href="https://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falters-amec-caution">Continue reading...</a>BusinessAmecShireCarnivalRio TintoTullow OilAberdeen Asset ManagementSVG CapitalNextTalvivaara Mining CompanyThu, 14 Feb 2013 16:57:40 GMThttp://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falters-amec-cautionNick Fletcher2013-02-14T16:57:40ZFTSE 100 slips lower as Amec's cautious outlook disappoints investorshttps://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falls-amec-rio-tinto
Engineering consultancy biggest faller in leading index, while Rio Tinto rises despite $3bn annual loss<p>As leading shares struggle to find direction, <strong>Amec </strong>has found one.</p><p>Unfortunately for shareholders in the engineering consultancy group, that direction is down.</p> <a href="https://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falls-amec-rio-tinto">Continue reading...</a>BusinessAmecRio TintoTullow OilReckitt BenckiserAberdeen Asset ManagementSVG CapitalNextCarnivalThu, 14 Feb 2013 09:32:56 GMThttp://www.theguardian.com/business/marketforceslive/2013/feb/14/ftse-100-falls-amec-rio-tintoNick Fletcher2013-02-14T09:32:56ZTate and Lyle turns sour after debt worries, while FTSE edges high on Greek hopeshttps://www.theguardian.com/business/marketforceslive/2012/feb/09/tate-debt-worries
Third quarter sales growth disappoints as borrowings rise on corn purchases<p><strong>Tate and Lyle</strong> led the FTSE 100 fallers after a disappointing trading update which pointed to higher than expected debt levels.</p><p>The maker of Splenda sweetener said operating profit in the third quarter was in line with expectations but the rate of volume growth was lower than in the first half. Rising corn prices meant that net debt at the end of March this year would be higher than the £464m recorded in the previous year. In a sell note Martin Deboo at Investec Securities said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/feb/09/tate-debt-worries">Continue reading...</a>BusinessTate and LyleBGRolls-RoyceRio TintoSVG CapitalRankEnterprise InnsThu, 09 Feb 2012 17:29:17 GMThttp://www.theguardian.com/business/marketforceslive/2012/feb/09/tate-debt-worriesNick Fletcher2012-02-09T17:29:17ZFTSE 100 gains ground, while Burberry moves higher on French venture movehttps://www.theguardian.com/business/marketforceslive/2011/dec/20/ftse-gains-burberry-higher
Markets shake off eurozone worries in light trading, while luxury goods group says it may renegotiate contract with Interparfums<p><strong>Burberry</strong> shares have been volatile in recent months following concerns about the effect of a global slowdown on the luxury goods market.</p><p>But they climbed 17p to £11.68 on Tuesday on hopes the company may get a better deal out of its relationship with French perfume group Interparfums, its largest licensee outside Japan. Burberry said it wanted to renegotiate the existing contract, and analysts said this could mean the two forming a full joint venture. Alternatively Burberry could exercise its right to buy out its contract in July 2012 for a minimum payment of €200m, rather than wait till the licence period ends in 2017. Analyst Simon Irwin of Liberum Capital said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2011/dec/20/ftse-gains-burberry-higher">Continue reading...</a>BusinessBurberryAstraZenecaGlaxoSmithKlineRoyal Bank of ScotlandBarclaysAggrekoSVG CapitalOcadoWSPTue, 20 Dec 2011 16:54:37 GMThttp://www.theguardian.com/business/marketforceslive/2011/dec/20/ftse-gains-burberry-higherNick Fletcher2011-12-20T16:54:37ZAmec leads FTSE 100 lower after cautious outlookhttps://www.theguardian.com/business/marketforceslive/2010/mar/04/amec-marketforces
<p>On a busy day for corporate and economic news,<strong> Amec</strong> led the market lower after its trading update disappointed investors.</p><p>The oil services and engineering group fell 55p to 765.5p, the biggest faller in the leading index, as a cautious outlook statement outweighed better than expected 2009 profits of £208.3m, up 13%. Its oil company customers have delayed projects following falls in the oil price, and Amec admitted the trading environment would continue to be challenging.</p><p>The Trinity Mirror analyst meeting went very well and in our view was the best by the group for some time. We were particularly encouraged by three areas. First, the group clearly outlined its strategy for generating revenues from online media. It argues that regionals is an ad-driven model in print, and will remain so online; it has no plans to introduce paywalls for regional sites. Instead, it will continue to develop its advertising offering and expects the proportion of Regional revenues/EBITA generated by digital to rise from the current 10%/18%. Trinity believes the model for Nationals is different, due to the cover price revenue in print. The group is building sites which serve specialised audiences (eg <a href="http://www.mirrorfootball.co.uk/">Mirrorfootball.co.uk</a>) and can generate multiple revenue streams, including paid content.</p><p>Second, it detailed its new operating model, which permanently removed £40m of costs in 2009 with a further £20m to come in 2010. Third, its financial position is now much stronger, with net debt reduced to 2.3 times, and Trinity is now considering when to reinstate dividends. Current trading is solid, reflecting easing comparatives though uncertainty remains especially into the second half. We have raised our forecasts to £80m/22p, which we view as conservative. The shares have rebounded considerably since last year, but we them as undervalued on a PE of 7 times. We retain our buy recommendation.</p> <a href="https://www.theguardian.com/business/marketforceslive/2010/mar/04/amec-marketforces">Continue reading...</a>AmecBusinessPartyGamingAvivaTrinity MirrorSchrodersSVG CapitalEurasian Natural Resources CorporationRandgold ResourcesGaliformThu, 04 Mar 2010 17:16:23 GMThttp://www.theguardian.com/business/marketforceslive/2010/mar/04/amec-marketforcesNick Fletcher2010-03-04T17:16:23ZBT drops on pension deficit worrieshttps://www.theguardian.com/business/marketforceslive/2009/mar/06/btgroup-avivabusiness
<p>Telecoms group <strong>BT</strong> has fallen sharply on fears it might need to pump up to £750m a year into its pension fund because of a rising deficit, and could also cut its dividend. This - along with another sell-off in the insurance sector - helped pull the market back from its best levels, despite a revival among mining shares.</p><p>BT - which reports final results in the middle of May - lost 9.3p to 74.1p as Morgan Stanley suggested the company's pension deficit could reach £10bn. It said:</p><p>"We now consider £500m per annum a minimum top-up level (previously a maximum), with £750m a possibility if pension trustees take a more conservative view on deficit recovery."</p><p>"A zero final-dividend is possible, leaving a total dividend at 5.5p, and the stock on a significant premium to the sector."</p><p>"We expect a strong set of numbers with a 13% rise in underlying profits before tax, a 17% rise in earnings per share and over 20% dividend growth. We think that Morrison's journey has a long way to go and with its defensive and growth characteristics we remain buyers."</p> <a href="https://www.theguardian.com/business/marketforceslive/2009/mar/06/btgroup-avivabusiness">Continue reading...</a>BusinessBTAvivaPrudentialLegal and GeneralRio TintoBHP BillitonKazakhmysEurasian Natural Resources CorporationWolseleyEnterprise InnsHibuBrixtonSVG CapitalMorrisonsAnglo AmericanFri, 06 Mar 2009 17:16:39 GMThttp://www.theguardian.com/business/marketforceslive/2009/mar/06/btgroup-avivabusinessNick Fletcher2009-03-06T17:16:39ZFTSE 100 slips below 3500 as insurers fall furtherhttps://www.theguardian.com/business/marketforceslive/2009/mar/06/avivabusiness-legalandgeneralgroup
<p>Leading shares have moved into negative territory once more, with the <strong>FTSE 100</strong> below 3500 and heading for a fresh six year low, as a recovery in mining stocks is outweighed by more falls among the insurers.</p><p>After <strong>Aviva</strong>'s £1.3bn loss yesterday reignited worries that the insurers could be the next financial sector to come under pressure, their shares are falling further today. Aviva is down another 11.8p at 178.1p - more than 7% - with its shares automatically suspended for around five minutes early on to allow a flurry of trades to be resolved.</p> <a href="https://www.theguardian.com/business/marketforceslive/2009/mar/06/avivabusiness-legalandgeneralgroup">Continue reading...</a>BusinessAvivaLegal and GeneralFriends ProvidentRio TintoBHP BillitonAnglo AmericanSVG CapitalElectra Private EquityFri, 06 Mar 2009 11:39:07 GMThttp://www.theguardian.com/business/marketforceslive/2009/mar/06/avivabusiness-legalandgeneralgroupNick Fletcher2009-03-06T11:39:07ZPrivate equity firm SVG slumps on £200m cash callhttps://www.theguardian.com/business/marketforceslive/2008/dec/18/3igroupbusiness-svgcapital
<p>Private equity firm <strong>SVG Capital</strong>, which is a backer of global buyout business Permira, has lost around a quarter of its value after launching a deeply discounted cash call.</p><p>Its shares have slumped by 50p to 132p - a 27% decline - as it announced plans to raise £200m with a placing and one for one rights issue at 100p a share. It has also written down the value of its portfolio by 40% in the light of current market conditions, and will cap its commitment to the Permira IV fund at £343m rather than the originally planned £796m.</p> <a href="https://www.theguardian.com/business/marketforceslive/2008/dec/18/3igroupbusiness-svgcapital">Continue reading...</a>Business3iSVG CapitalMarks & SpencerBritish AirwaysAir transportThu, 18 Dec 2008 08:49:37 GMThttp://www.theguardian.com/business/marketforceslive/2008/dec/18/3igroupbusiness-svgcapitalNick Fletcher2008-12-18T08:49:37Z